opinion

Metals: buy the dip?

Kitco Media
By Jonathan Da Silva
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On Wednesday (Aug 3) we wrote: "Swing traders may already have locked in profit whereas positional traders should be aware that the first pullback of the current move off the low could shake their belief that higher prices are yet to come." That morning silver had tagged $20.45 spot resistance.

Today, on the absolute "blowout" jobs number, said pull-back seems to be manifesting. And, if what we are seeing now is the extent of it, it is shallow and is being bought. The below hourly chart shows gold finding support at its recent rising trendline.

A zoomed out look at gold, from the beginning of its recent bull market shows major resistance at the familiar $1830-35 level. Until then bulls may have the opportunity to buy dips relatively safely, if this morning’s action is any indication. Otherwise, $1750 gold remains the level of support bulls want to hold.

Thanks, and have a great weekend,

Kitco Media

Jonathan Da Silva

Jonathan Da Silva developed a passion for hard money and economics from a young age having been influenced by family who sought to teach me that "nothing is free", and the importance of intrinsic value early on. My interest in markets grew keener during the great financial crisis of 2008; leaning on family with vast trading experience, I began to self-educate on technical analysis and economics- drawing inspiration from the works of individuals like W.D. Gann and Adam Smith. I have been a proud member of the Kitco team since 2017 and hope that my writing inspires readers to consider an objective view of the metals, and the greater financial markets.

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